Masters Theses

Seth M. Kerr

Date of Award

12-1984

Degree Type

Thesis

Degree Name

Master of Science

Major

Communication

Major Professor

Alan D. Fletcher

Committee Members

George A. Everett, Donald G. Hileman

Abstract

The purpose of this study was to determine, through a mail survey, how client companies select advertising agencies, what factors most contribute to that selection, client attitudes toward agencies, and suggestions for improving the agency-client relationship from the client point of view.

The leading national advertisers of 1982 were chosen as survey subjects. As a whole, this group spent almost 55% of all advertising dollars in the eight measured media. In a volatile economy, the one hundred leading advertisers poured $14.8 billion into advertising. 45% of the advertisers responded to the survey, which consisted of 12 multiple choice questions specifically regarding the topics of research.

Response showed that while many different people were involved in the agency selection process, the company president most frequently made the decision, either alone or as head of a search committee. Several factors contributed to the selection process and, as hypothesized for this study, creative reputation and capability were most often cited by the advertisers as reasons for changing agencies.

A second hypothesis was supported as well in that large advertisers do not change agencies as often as smaller advertisers. The majority of clients responding to the survey reported that their current agency relationships have lasted more than ten years, and in many cases, more than twenty years.

The majority of responding client companies currently use an annual review of agency performance in order to maintain a healthy relationship. While some agencies have expressed a dislike for the system of agency reviews, many executives believe the process to be beneficial to both sides.

From the client's viewpoint, the agency-client relationship is a two-way street with both sides working in harmony. If the two sides take opposing views regarding specific problems rather than attempt to resolve matters through joint efforts, a split is most probable. By improving the levels of communication between the two corporate structures, developing mutual trust and understanding of problems and giving more information in assignments, the client believes any agency-client relationship can and will grow and prosper to mutual satisfaction.

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